Sixth Street Specialty Lending (NYSE:TSLX) Announces Earnings Results, Misses Estimates By $0.07 EPS

Sixth Street Specialty Lending (NYSE:TSLX) released its earnings results on Tuesday, May 5th. The financial services provider reported $0.42 earnings per share for the quarter, missing the consensus estimate of $0.49 by ($0.07), Zacks reports. Sixth Street Specialty Lending had a net margin of 25.25% and a return on equity of 11.92%. The company had revenue of $93.40 million for the quarter, compared to analysts’ expectations of $103.14 million. During the same quarter last year, the firm posted $0.58 earnings per share.

Sixth Street Specialty Lending Trading Down 1.1%

TSLX stock traded down $0.20 during midday trading on Friday, reaching $17.16. 815,375 shares of the company traded hands, compared to its average volume of 915,845. The firm has a market capitalization of $1.63 billion, a price-to-earnings ratio of 14.93 and a beta of 0.65. The company has a debt-to-equity ratio of 1.17, a quick ratio of 3.39 and a current ratio of 3.39. The business has a 50 day moving average of $18.24 and a 200-day moving average of $20.03. Sixth Street Specialty Lending has a 52-week low of $16.96 and a 52-week high of $25.17.

Sixth Street Specialty Lending Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Monday, June 15th will be paid a dividend of $0.42 per share. The ex-dividend date of this dividend is Monday, June 15th. This is an increase from Sixth Street Specialty Lending’s previous quarterly dividend of $0.01. This represents a $1.68 annualized dividend and a yield of 9.8%. Sixth Street Specialty Lending’s payout ratio is presently 160.00%.

Analysts Set New Price Targets

A number of analysts have recently issued reports on the stock. Wall Street Zen cut shares of Sixth Street Specialty Lending from a “hold” rating to a “sell” rating in a research note on Saturday, May 9th. Keefe, Bruyette & Woods lowered their price target on Sixth Street Specialty Lending from $21.00 to $18.50 and set an “outperform” rating on the stock in a report on Thursday, May 7th. Zacks Research lowered shares of Sixth Street Specialty Lending from a “hold” rating to a “strong sell” rating in a report on Thursday, May 7th. JPMorgan Chase & Co. reduced their price objective on shares of Sixth Street Specialty Lending from $18.50 to $17.50 and set a “neutral” rating on the stock in a research report on Thursday, May 7th. Finally, Citizens Jmp lowered their target price on shares of Sixth Street Specialty Lending from $25.00 to $24.00 and set a “market outperform” rating on the stock in a report on Wednesday, April 22nd. Five analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $19.83.

Insider Activity at Sixth Street Specialty Lending

In other news, VP Alan Waxman bought 200,000 shares of Sixth Street Specialty Lending stock in a transaction dated Monday, March 9th. The shares were acquired at an average price of $18.18 per share, with a total value of $3,636,000.00. Following the completion of the purchase, the vice president owned 500,000 shares in the company, valued at $9,090,000. The trade was a 66.67% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, VP Ross Anthony Bruck purchased 8,000 shares of the company’s stock in a transaction that occurred on Monday, May 11th. The shares were purchased at an average cost of $17.76 per share, with a total value of $142,080.00. Following the completion of the purchase, the vice president owned 18,250 shares in the company, valued at $324,120. This trade represents a 78.05% increase in their position. The disclosure for this purchase is available in the SEC filing. In the last three months, insiders have bought 553,000 shares of company stock worth $10,139,230. Corporate insiders own 3.83% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Advisory Services Network LLC purchased a new position in Sixth Street Specialty Lending in the 3rd quarter worth about $75,000. Arax Advisory Partners purchased a new stake in shares of Sixth Street Specialty Lending during the fourth quarter worth about $109,000. Atlas Capital Advisors Inc. purchased a new stake in shares of Sixth Street Specialty Lending during the fourth quarter worth about $111,000. Northwestern Mutual Wealth Management Co. acquired a new position in shares of Sixth Street Specialty Lending during the fourth quarter valued at about $118,000. Finally, Maia Wealth LLC acquired a new position in shares of Sixth Street Specialty Lending during the third quarter valued at about $210,000. Institutional investors own 70.25% of the company’s stock.

Sixth Street Specialty Lending Company Profile

Sixth Street Specialty Lending Inc (NYSE: TSLX) is a closed-end, externally managed business development company that provides flexible debt financing solutions to middle-market companies. The fund primarily targets senior secured loans, unitranche facilities, mezzanine debt, second-lien financings and equity co-investment opportunities. By structuring tailored capital solutions, Sixth Street Specialty Lending seeks to support growth initiatives, recapitalizations and refinancings across a diverse set of industries, including technology, healthcare and business services.

As an affiliate of Sixth Street Partners, a global alternative investment firm, the company leverages the broader platform’s credit research, operational expertise and industry relationships.